PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩303 per share · Prices as of the 2026-10-02 close
Neowiz proved its console development capability through the Lies of P franchise, but earnings entered an adjustment phase in 2026 amid a new-title vacuum and high-base effects.
Full-year 2025 operating profit reached KRW 59.98 billion (13.9% margin), a sharp improvement, but H1 2026 quarterly operating profit fell to the KRW 7-8 billion range due to base effects from the 2025 Lies of P: Overture DLC.
The mobile segment, boosted by the Brown Dust 2 anniversary campaign and a Sanrio collaboration for Cats & Soup, grew 21% year-on-year in Q2 2026, offsetting weakness in PC/console.
In August 2026, Sung-jun Park, head of the New Title Development Group behind Lies of P, was appointed co-CEO, shifting the company toward a development-leadership-centered governance structure.
Under the 2025-2027 three-year shareholder return policy, a minimum annual KRW 10 billion (KRW 5 billion buyback/cancellation plus KRW 5 billion cash dividend) is guaranteed, and the FY2025 year-end dividend marked a resumption after a two-year gap.
Scheduled launches for the second half include the Lies of P: Complete Edition physical package, the China market entry of Kingdom 2, and the global launch of Hello Seoul: Itaewon Chapter.
Neowiz is a game developer and publisher organized around three business pillars: PC/console, mobile, and web-board games (Pmang). The PC/console segment centers on the self-developed soulslike action titles Lies of P and Shape of Dreams, generating KRW 37.3 billion in revenue in Q2 2026.
The mobile segment, led by the subculture collection RPG Brown Dust 2 and the life-simulation Cats & Soup series, posted KRW 53.2 billion in the same quarter, accounting for more than half of total revenue.
The other segment includes the web-board game Pmang and new business initiatives, contributing KRW 11.6 billion in Q2.
Following the August 2026 leadership transition to a co-CEO structure with Sung-jun Park and Tae-geun Bae, the organization was realigned into three groups: New Title Development, Global Business, and Live Game Business.
Compared with larger peers such as Nexon, Netmarble, NCsoft, and Krafton, Neowiz remains smaller in scale but differentiates itself as one of the few domestic developers directly producing and distributing AAA-tier premium console titles.
Its pipeline includes self-developed projects such as the next Lies of P title, Project Rubicon, Project Windy, and Project CF, alongside publishing titles like Kingdom 2 and Hello Seoul: Itaewon Chapter.
The company has built up console development capability since designating consoles as its next growth engine in 2021, with the success of Lies of P widely viewed as the first proof point of that strategy.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩110B | ₩18.6B | 16.9% |
| 2025Q3 | ₩127.4B | ₩26.5B | 20.8% |
| 2025Q4 | ₩106.3B | ₩4.7B | 4.4% |
| 2026Q1 | ₩101.4B | ₩7B | 6.9% |
| 2026Q2 | ₩102.1B | ₩7.9B | 7.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩294.6B | ₩19.6B | ₩13.1B | 6.6% | 2.9% | 22.1% |
| 2023 | ₩365.6B | ₩31.6B | ₩48.7B | 8.6% | 9.9% | 27.3% |
| 2024 | ₩366.8B | ₩32.9B | ₩2.4B | 9.0% | 0.5% | 19.5% |
| 2025 | ₩432.7B | ₩60B | ₩50B | 13.9% | 9.4% | 22.2% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
Consolidated revenue in 2025 rose 18.0% year-on-year to KRW 432.7 billion from KRW 366.8 billion in 2024, while operating profit surged 82.2% to KRW 59.98 billion from KRW 32.92 billion, lifting the operating margin from 9.0% to 13.9%.
Net profit attributable to owners also expanded from KRW 2.39 billion in 2024 to KRW 49.98 billion in 2025.
The core driver was the strong reception of the Lies of P: Overture DLC launched in June 2025, whose concentrated impact drove Q3 2025 to a quarterly record of KRW 127.4 billion in revenue, KRW 26.5 billion in operating profit, and KRW 25.9 billion in owners' net profit.
Once that DLC effect faded, Q4 2025 revenue and operating profit dropped sharply to KRW 106.3 billion and KRW 4.7 billion, respectively, and operating profit remained well below the Q3 peak through Q1 2026 (revenue KRW 101.4 billion, operating profit KRW 6.95 billion) and Q2 2026 (revenue KRW 102.1 billion, operating profit KRW 7.94 billion).
Net profit, however, was notably higher than operating profit in Q1 (KRW 16.2 billion) and Q2 2026 (KRW 18.6 billion), reflecting non-operating factors such as expanded valuation gains on financial assets.
The balance sheet remains sound, with the debt ratio at a low 22.2% at year-end 2025 and annual operating cash flow of KRW 76.1 billion comfortably exceeding net profit.
Overall, the 2025 profit surge relied heavily on a one-off console DLC hit, and H1 2026 has shown a moderate adjustment as that base effect fades against ongoing mobile-segment growth.
The Korean game industry is undergoing simultaneous maturation of mobile live-service operations and diversification into console/PC AAA titles and subscription-based casual genres.
While large operators such as Nexon, NCsoft, Krafton, and Netmarble pursue franchise expansion and M&A to reshape their businesses, Neowiz is positioned as a smaller mid-cap player differentiating itself through premium console game expertise.
Google announced a 2026 restructuring of Play Store in-app purchase fees, lowering the maximum rate from 30% to a 20% service fee (plus a separate 5% payment fee), with rollout to the Korean market scheduled to begin in December 2026.
This is widely seen as a structural factor that could ease payment-fee burdens for mobile-revenue-heavy publishers, though some note the later Korean rollout compared with the US and Europe (June 2026) may delay the tangible benefit.
Neowiz's mobile revenue mix was estimated at around 46% for 2025, and analysts have pointed to potential margin improvement if the fee cut materializes through reduced payment fees.
Because console/PC titles have longer sequel cycles and lower revenue predictability, the defensive strength of live-service mobile titles during new-title gaps tends to determine earnings stability.
Across the industry, the broadening trend of stronger shareholder returns among large operators (Krafton's roughly KRW 1 trillion program, Netmarble's raised payout ratio) has also prompted mid-cap developers to introduce dividend and buyback-cancellation policies aimed at valuation normalization.
In August 2026, the company appointed Sung-jun Park, head of the New Title Development Group and the driving force behind Lies of P, as co-CEO, positioning strengthened development capability as a top management priority.
For the second half, plans include a global launch in October of the physical package version of Lies of P: Complete Edition, following the early-August Nintendo Switch 2 version, which achieved a franchise-high Metacritic score of 86.
The MMORPG Kingdom 2 launched service in August and is pursuing entry into the Greater China market, while the global launch of the publishing title Hello Seoul: Itaewon Chapter is also being prepared for the second half.
The self-developed pipeline reportedly includes the next Lies of P title, Project Rubicon (a story-driven RPG), Project Windy (a soulslike), and Project CF (a life simulation), each at either the vertical-slice or prototype stage, with the subculture-themed Project FN and the publishing CRPG title Wind-Up Deadman added as new lineup entries.
On the shareholder-return front, the board approved in August a KRW 5 billion buyback corresponding to the minimum guaranteed cancellation allotment for fiscal year 2026, continuing execution of the three-year policy.
However, since most new titles remain in early development stages, large titles capable of contributing materially to 2026 earnings are limited, and some in the securities industry view 2027-2028 as the period when pipeline contributions are likely to become substantial.
Neowiz tends to trade at a discount to its net asset value, with its price-to-book ratio sitting below 1x.
On the earnings side, given that owners' net profit fell close to breakeven in 2024 before recovering sharply in 2025, the current earnings multiple can be viewed as reflecting a normalized profit level after the one-off DLC-driven boost of 2025 has faded.
On dividends, the company is only in the early stage of a resumed payout after a two-year gap, with a payout level still modest relative to larger peers, and future distribution size is set to track operating profit under the three-year shareholder return policy.
Recent sell-side views diverge: Hyundai Motor Securities stated in a September 2026 report that it initiated coverage with a 'Market Perform' rating and a target price of KRW 20,000, citing the gap in major console releases and limits to live-service performance.
This suggests valuation assessments could shift once the new-title lineup becomes more concrete, making pipeline visibility an important variable for how the earnings multiple develops going forward.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04
Lies of P became a landmark success case for domestic console gaming as both the base title and its DLC performed well, with the Nintendo Switch 2 version achieving a franchise-high Metacritic score of 86.
Four to five self-developed titles are progressing through vertical-slice or prototype stages, most targeting the global PC/console market. As franchising advances, there is room to validate a repeatable hit-making system in the console business.
Brown Dust 2's third-anniversary campaign and content updates lifted Q2 2026 mobile revenue 21% year-on-year, while Cats & Soup also saw a rebound in user metrics through a Sanrio IP collaboration.
As the console segment continues to face base-effect headwinds, mobile now accounts for more than half of total revenue, acting as an earnings buffer. The newly launched Cats & Soup: Magic Recipe also contributed early results.
A policy guaranteeing a minimum annual return of KRW 10 billion (KRW 5 billion buyback/cancellation plus KRW 5 billion cash dividend) is in effect for 2025-2027, and the FY2025 year-end dividend marked a resumption after a two-year gap.
In August 2026, Sung-jun Park, who led the development of Lies of P, was appointed co-CEO, placing development leadership at the center of management. A clear, performance-linked return framework is cited as a factor increasing the predictability of shareholder returns.
With the impact of the June 2025 Lies of P: Overture DLC fading, operating profit stayed well below the Q3 peak of KRW 26.47 billion, ranging between KRW 4.7 billion and KRW 7.9 billion from Q4 2025 through Q2 2026. PC/console revenue fell 35% year-on-year to KRW 37.3 billion in Q2 2026. The long lead time to the next major console title raises the possibility of a continued earnings gap.
Hyundai Motor Securities initiated coverage with a 'Market Perform' rating in a September 2026 report, pointing to the gap in major console IP and the urgency of finding new live-service hits.
The recently launched Kingdom 2 was estimated to generate daily revenue below KRW 100 million, limiting its contribution to overall results. The view suggests short-term momentum may remain limited until the new-title lineup becomes more concrete.
Many self-developed titles remain at the vertical-slice or prototype stage, requiring considerable time before launch. Some in the securities industry expect meaningful earnings contribution from these titles only in 2027-2028. Development delays or a lack of commercial success could push back the timing of earnings recovery further.
Numerous console new titles, including the next Lies of P installment, remain at the prototype or vertical-slice stage, creating uncertainty around launch timing and commercial performance if development is delayed or quality falls short.
Premium packaged games tend to concentrate revenue early after launch, meaning the success or failure of individual titles amplifies earnings volatility.
Google's in-app purchase fee cut is scheduled to roll out to the Korean market starting December 2026, later than in the US and Europe.
For Neowiz, given its substantial mobile revenue exposure, the tangible benefit from fee reductions may be delayed, and whether other platforms such as Apple will follow suit remains unconfirmed.
Quarterly revenue and profit have shown wide swings tied to the sales curve typical of console/PC packaged games and the timing of DLC releases. As seen in the Q3 2025 surge followed by a sharp decline from Q4 onward, similar base effects tied to specific content launch timing could recur going forward.
Sales indicators and whether PC/console revenue rebounds should be checked following the global launch of the Lies of P: Complete Edition physical package.
The global launch of Hello Seoul: Itaewon Chapter and the progress of Kingdom 2's entry into Greater China should be checked to see whether new publishing titles contribute to earnings.
The Q3 2026 preliminary earnings release should be reviewed for changes in the mobile-versus-console revenue mix and whether the operating margin is recovering.
This is when Google Play's in-app purchase fee cut is set to apply to the Korean market, warranting a check on whether reduced payment fees actually flow through to earnings.
Ongoing development progress and any concretization of disclosure schedules for vertical-slice/prototype-stage titles such as Project Rubicon and Project Windy should continue to be monitored.
Neowiz demonstrated domestic console game development capability through the Lies of P franchise and achieved a profit recovery in 2025, but H1 2026 earnings adjustments confirmed that much of that recovery depended on a one-off DLC hit.
Mobile-segment performance from Brown Dust 2 and Cats & Soup has partly offset the console base-effect decline, acting as an earnings buffer, though some assessments note its limits in driving overall company growth.
The company has moved to build predictability and trust through a development-leadership-centered management transition and a three-year shareholder return policy.
However, with numerous new console IPs still in early development stages, the time lag until the next hit emerges remains a key variable shaping earnings direction.
Structural industry shifts such as the Google Play fee cut are cited as a medium-to-long-term profitability factor, but the later Korean rollout timing means the tangible benefit will take time to materialize.
Ultimately, the pace at which the new-title pipeline gains visibility and whether it can replicate past hit-making success are likely to be the key factors differentiating future earnings and market assessment.
Report written 2026-09-05 · Data as of 2026-09-04
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